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This presentation discusses the pressing issues faced by residential tenants experiencing financial hardship, highlighting the characteristics of private renters in Australia. With over 350,000 households affected and approximately 85,000 earning less than $500 per week, the impact of rising rents and insufficient assistance is evident. Issues such as overcrowding, discrimination, and the general shortage of affordable housing exacerbate the situation. The presentation emphasizes the need for policy changes and community engagement to address these critical challenges.
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Hardship & Residential Tenants Presentation to Community & Financial Hardship Conference by Mark O'Brien, CEO
characteristics of private tenants • 1 in 5 households (350,000+) • 70,000 households in social housing • high level of single and single parent households • high level of low income households • 85,000+ private renter households earn less than $500 per week • significant NESB component • 60,000+ private renter households with LOTE speaker • new arrivals • less transition • 40%+ renting for more than 10 years
unaffordable • high rents relative to low incomes • < 1:5 affordable for low income • increasing rents • 12% for 12 months (< March 2008) • limited effect of rent assistance • 35% of CRA recipients still in housing stress (>100K households) • low wage singles excluded
figure 1: estimated composition of housing stress* private rent public rent outright owner purchaser 230,000 (26%) 590,000 (67%) 38,000(4.4%) 23,000(2.6%) * Source: NATSEM, 2004
inappropriate • poor standard • more repairs required and more structural defects (1:5 require repair) • less energy efficient (1:10 no heating) • poorly located • affordable housing v job opportunities, social services etc. • overcrowding • 16.5 % of households (v 2.7% owned) • poor security of occupancy • no reason eviction
inaccessible • discrimination • real estate agents and landlords • tenancy databases ( 1.3m listed) • shortage of low cost rental housing • general vacancy rate 1.4% • est. 14,000 units in Victoria • negligible alternative supply • public housing targeting • community housing sector <1% of all existing housing tenures
private market failure is not new • Henderson Inquiry 1975 • “Our research…showed that after meeting housing costs, renters of privately owned accommodation are substantially poorer than the rest of the population.” • >30 years of policy development and implementation • implementation of CRA (1982) • negative gearing (1985/1987) • public housing targeting (1990’s) • homeless services growth